By Zena Brand, VP of Strategy & Brands, TSheets.com
Have you ever looked under the couch cushions and found some change? What if you could look inside the numbers of your business and do the same?
Inside a local construction company (let’s call the owner Mr. Build) there was a buzz of activity. Supervisors were stomping in and out the door and the office manager was hectically tracking down, deciphering, and organizing the time cards. From the corner of the small job trailer, were mumblings from Mr. Build of “… I need a better idea of my actual project costs, why are my labor costs so high, and cash, and… why are we so tight on cash?”
Turns out Mr. Build didn’t know the cash that was in the couch cushions.
Believe it or not, a business that inaccurately or inefficiently tracks employee time may as well be losing money down the couch cushions. If you own the business, the bad news is, you’re the one stuffing it into the couch.
The American Payroll Association (APA) has determined that companies can save 2% of gross payroll costs each year if they automate their time tracking. Additionally, Social Security, Medicare and Workers Compensation taxes are tied directly to payroll. Keeping payroll accurate saves an estimated 10% in tax obligations, paid on top of the hourly rate of each employee.
So that chump change of 2% or more – yep that’s the money Mr. Build was dropping down the couch cushions. Or even worse, unnecessarily paying to Uncle Sam. But in the big picture, is that 2% and some tax “change” worth plundering the couch for?
Let’s consider Mr. Build’s numbers: Mr. Build has 20 employees of whom he pays $10/hour, who work regular 40 hour weeks. Using the payback calculator at www.tsheets.com/payback, the 2% in payroll savings equal $176 per week or just shy of $10k per year. Big picture 2% savings?
Almost $10,000 per year. That’s payroll savings, all stemming from accurate, automated time tracking.
Hmmm. Maybe plundering the couch does have upside. Interested in calculating what your business could save with automated timesheets? Ditch the paper and pencil and instead enter your numbers at www.tsheets.com/payback and find out what your business is leaving in the couch cushions.
About the Author:
Zena Brand, VP of Strategy & Partnerships, TSheets
